How often do you hear about someone landing a job because they knew someone who introduced them to an opportunity, which eventually led to an interview or job offer? This approach is a prime example of the hidden job market in action.
What is the hidden job market?
Just as its name suggests, the hidden job market refers to job openings not publicly advertised through conventional channels, like online job boards or company websites. While some articles claim 80% of jobs are filled this way, many reputable studies show that networking and referrals account for 30鈥�60% of hires. However, just because a position is filled through a referral does not mean it was not posted publicly. With that in mind, we will now look at three of the common ways people are hired through the hidden job market.
Employee referrals
Companies often prioritize referred candidates because they are perceived as less-risky hires. In fact, many organizations offer rewards and incentive programs to employees who successfully refer someone for a role. Not only does this approach reduce hiring costs, but it also increases the likelihood of a cultural and professional fit.
Internal hiring/promotion
Many companies frequently fill roles internally, either by promoting existing employees or re-hiring former employees and contractors. This approach is often effective because internal candidates are already familiar with the company鈥檚 culture, systems, and expectations, which reduces recruitment costs and onboarding time. For example, a lab technician may be promoted to a research and development (R&D) team or shifted to a related position within the company based on their performance.
Professional networking
Building connections with people in your field and at your target companies is crucial for getting personal referrals or learning about unadvertised openings. It is important to understand that networking simply involves initiating meaningful conversations. It does not always have to involve attending professional events or conferences; oftentimes, casual conversations with peers, mentors, or alumni can lead to unexpected opportunities.
While this method may seem challenging to navigate at first, by understanding how it works, you can give yourself a competitive edge. By targeting companies directly and building connections, you avoid competing with hundreds of external applicants and get prioritized as part of a smaller, more targeted candidate pool. Stronger connections increase your chances of being referred for new opportunities.
How prevalent is the hidden job market in STEM?
The hidden job market is moderately prevalent in science, technology, engineering, and mathematics (STEM), with its significance varying depending on the industry, role type, and career level. While many positions are publicly advertised, factors like networking, referrals, and internal promotions are key to securing specialized roles.
Many academic positions are filled through networking, especially in niche research areas, with postdoctoral and research assistant roles often going to internal candidates or those referred through professional networks.
In industry STEM roles, especially in tech, biotech, and engineering, public job postings are common, but referrals are heavily prioritized for mid- and senior-level positions, particularly in emerging fields like quantum computing, artificial intelligence (AI), and renewable energy. Start-ups and smaller companies, often with limited human resources (HR) departments, rely more on personal connections and networking referrals.
How do you tap into the hidden job market?
Using this strategy effectively requires a mindset shift from a job-search mentality to a relationship-building mentality. Instead of focusing solely on finding and applying to jobs, make a list of specific companies you want to target and use LinkedIn to build connections with people who work at those companies.
Target companies, not jobs
Once you have made a target company list, research their mission, values, press releases, industry trends, and social media presence. Use LinkedIn to follow those companies and identify and connect with people there who work in your target field. Do you have a mutual connection who can make an introduction? If not, a cold LinkedIn message where you introduce yourself and why you want to connect works just as well.
Take a look at your existing network
For many people new to networking, this method can seem overwhelming and awkward at first. Reach out to former colleagues, mentors, and peers, and tell them about your job search goals. Even friends, family members, and acquaintances outside your field may know someone who knows someone who can help. Additionally, networking events, industry conferences, and alumni meetups are great places to meet people, learn about new opportunities, and initiate conversations that provide you with insider knowledge about working at a particular company, in a certain industry, or in a specific job.
Remember, tapping into the hidden job market takes time and effort. It is about building trust and becoming known in your space, which can open doors in the future.
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This article originally appeared in the Career Connection column in the February 2025 issue of CEP. Members have access online to complete issues, including a vast, searchable archive of back-issues found at www.aiche.org/cep.